With Black Friday coming up fast, eCommerce merchants are scrambling to get their ducks in a row so they can cash-in on the biggest shopping event of the year.
One question many merchants ask is, “how do I give my Black Friday promotions a sense of urgency?”
You know those offers that you just have to click on? Flash sales, happy hours, 75% off until midnight!
This is what we are talking about when we say “daily deals.”
Online promos like this one from Rue 21 have become a common sight in the days leading up to Black Friday weekend:
There’s no doubt this kind of offer can attract attention and drive customers to your site for fast conversions. The question is, are daily deals right for your store?
Here are 3 questions to ask yourself before planning a “daily deals” promotion.
1. Do I have the right product?
The most important factor when determining if daily deals are a good fit for your store or not is the product you sell.
When customers are being rushed to make up their mind, “impulse purchase” type products, particularly those at a lower price point, tend to work best.
Some great “daily deals” product types include:
- Consumable items like chocolates, candles or makeup
- Things that people wear like jewelry or clothing
- Gifts, trinkets, small-ticket items that people buy on a whim
Look at this deal of these “today only” under $20 deals from Sephora:
The price point and types of product make for perfect impulse purchases. You can even imagine a customer picking up more than one of these great offers.
So what kind of products should you avoid?
In general, items that are expensive or require more consideration aren’t ideal.
With technical products like cameras, electronics, musical instruments, computers or devices, customers usually do quite a bit of research, read reviews and consumer reports, and compare prices and specs. You’ll be hard-pressed to get someone to buy an expensive stereo system on a countdown timer.
That isn’t to say you can’t use daily deals to sell more expensive, or complex items.
For example, If you sell hand-made leather bags at a higher price point, a “10% off Today Only” sale could be the extra incentive customers who are already familiar with your product need to finally make the purchase leap.
Musician’s Friend uses daily deals every day of the year to sell larger ticket items like instruments and audio equipment:
A Ukulele isn’t your typical impulse purchase type item, but these kind of offers are appealing to the type of customer who is already familiar with your products and may have done research in advance. The strength of the offer, in this case, 60% off, might seem too good to pass up.
If you sell products that have a low price point, are consumable or gift-able — or if they’re the kind of thing you can never have too much of — a Daily Deal may be just the ticket for a successful promotion.
What if you have a small product assortment? Are Daily Deals still right for your store?
2. Do I have the right assortment?
Nowadays, there are a large variety of successful eCommerce stores. Some stores sell freshly roasted coffee (https://www.scratchcoffee.com/), while others sell must-have cosmetics (https://www.kyliecosmetics.com/).
Why you can even buy vegan dog treats online. (https://v-dog.com/)
Regardless of what kind of store you own, when deciding whether a daily deal sale is right for your Black Friday strategy, it’s important to consider if you have enough product assortment, or enough inventory to set you up for success.
Running a “Daily Deals” promotion leading up to Black Friday sounds like a great idea — if you have enough variety to keep it interesting.
For example, if you sell coffee, and your entire offering consists of different flavors, plus some apparel and mugs, a Deal of the Day promo might not be ideal for your store. That’s not to say you can’t get creative and make it work for you.
Monday: Buy one get 50% off any blend
Tuesday: 30% off all dark roasts
Wednesday: Free mug with the purchase of any two bags
Thursday: is $5 off each bag, any roast
Friday: Spend and Save: Buy 2 get Free Shipping all week
Companies that offer a wide variety of products can offer daily deals in a series, which is great for encouraging customers to check back the next day to see what the new offer is.
You don’t have to be Best Buy to run this type of promotion. Just make sure you have enough different types of products that your customers will be interested in.
Another important consideration is your inventory.
If you run a flash sale, you had better make sure you have enough in-stock to make it last. There’s nothing worse than having to tell customers that you are sold out of a product they really wanted to buy.
As you are choosing your Black Friday offers, make sure you have the right assortment, price point, and inventory to support your target sales. This brings us to the third thing you should ask before running daily deals promotion.
3. Do I know my competition?
When we talk about competition in eCommerce, we are usually referring to similar stores that sell similar products to the same end customer.
If you sell gift-able chocolates, your direct competitors might be Godiva, Lindt, or Fererro Rocher. However, in the weeks leading up to Black Friday, your competitors may be broader than you realize.
Indirect competitors are those you are competing with for the discretionary dollar. For example, if you sell chocolates your competition may also be candles, flowers, or even shoes. If the customer is looking for a gift for mom, and the gift could include “anything mom loves,” you may be competing in those other categories as well.
Learn how to identify competition for your eCommerce business
As an eCommerce merchant, it is important to be aware of your competitors, their promotions, and their products.
You could subscribe to other company’s e-newsletters to gather a relevant intel into how they are marketing their products. This also serves as a great resource as you begin to plan your own promotions.
Keeping an eye on what other stores are planning — especially for Black Friday — is a way to ensure you have a compelling offer.
Successful promotions do not have to be a race to the lowest possible price. Strategic, well-planned offers such as daily deals can help you concentrate your markdowns on a specific product or category that drives traffic to your store. Once that traffic arrives, you have the opportunity to sell them what they came to buy and hopefully even more.
If you are a brand that does not deeply discount your products (and your customers know that), a 10% OFF One Day Only, Free Shipping, Gift with Purchase or even a sale on a single product we call a loss leader can still make for an effective daily deal promotion.
Playstation has the right idea:
Here are a few tips for how to offer a competitive daily deal special:
- Research what competitors did for Black Friday last year in your niche.
- If you know they launched on Thanksgiving in the past, you could start a bit early and launch on Wednesday morning or evening with a Sneak Peek.
- Consider offering a different Daily Deal during the days leading up to Black Friday.
- Plan to refresh your messaging throughout the sale period so it does not grow stale. Engage with customers on social media and send strategic emails.
Tip: having a strong VIP emailing list can be your secret weapon for Black Friday success.
A good daily deals strategy is an effective way to create urgency, drive traffic, and increase sales over Black Friday weekend. If you pick your deals correctly, your competition won’t stand a chance!
Looking for an easy and useful way to run daily deals, store-wide discounts, and more? Try the Bold Discounts App. Install on your Shopify or eCommerce store and watch your sales soar.
This article was originally published by our friends at Bold Commerce.